Banks were also strong, with Mitsubishi UFJ Financial Group adding 1.2 percent and Mizuho Financial Group advancing 1.4 percent.

Retail investors speculated that demand for defence-related equipment will increase after U.S. President Donald Trump put North Korea back on a list of state sponsors of terrorism on Monday, lifting stocks such as Ishikawa Seisakusho and Howa Machinery 7.2 percent and 10 percent, respectively. (Reporting by Ayai Tomisawa; Editing by Eric Meijer)